Q2 2016 – 21st Century Fox Earnings Call Summary

Below are my key takeaways from the 21st Century Fox Q2 2016 Earnings Call on Aug 3:

Summary:

Lachlan Murdoch, Co-Chairman, said “we have delivered a solid fiscal year performance driven by increases in affiliate revenues in both our domestic and international businesses as well as games and advertising revenue”.

Annual revenue (21st Century Fox ends their calendar year in Q2) was up 1.4% YoY to $27,326MM, due mainly to higher affiliate and advertising revenues at their Cable Network Programming and Television divisions, which was slightly offset by lower home entertainment and theatrical revenues at the Filmed Entertainment segment.

In the quarter, revenue was $6,646MM, up 7.1% from last year time period, when excluding the $2,040MM sale of the DBS business in 2015.

Received 103 primetime Emmy nominations and 41 sports nominations.

Fox News Channel was the highest rated basic cable channel over the last 12 months and achieved its highest level of total day viewing in its history.  Empire, The X-Files and Modern Family were 3 of the 4 top broadcast series.

Deadpool became the top grossing R-rated movie ever with a $783MM global take (source: BoxOfficeMojo.com), but unfortunately saw flat results for X-Men: Apocalypse and disappointing figures for Independence Day: Resurgence

Live feeds of their channels can be found on digital distribution platforms such as Dish’s Sling service for $25/mo, on Sony PlayStation’s Access Slim tier for $29.99/mo, on the upcoming Hulu OTT service, to which they are part owners of, or on their FOX NOW authenticated OTT service, which requires you to still have a Pay-TV subscription.

Yearly Financial Metrics:

  • Adjusted Total Revenue: $27,326MM
    • 2015: $26,952MM
  • Total OIBDA: $6,597MM
    • 2015: $6,722MM
  • Income from Continuing Operations: $3,024MM
    • 2015: $8,604MM
  • Adjusted EPS: $1.42
    • 2015: $3.93
  • Cable Network Programming: $15,029MM
  • Television: $5,105MM
  • Filmed Entertainment: $8,505MM
  • Affiliate Fees: $11,221MM
  • Advertising: $7,659MM
  • Content: $7,949MM

Quarterly Financial Metrics:

  • Total Revenue: $6,646MM
    • Q4 2015: $6,205MM
  • Total OIBDA: $1,451MM
    • Q4 2015: $1,544MM
  • Income from Continuing Operations: $606MM
    • Q4 2015: $147MM
  • Adjusted EPS: $0.30
    • Q4 2015: $0.06
  • Cable Network Programming: $3,921MM
  • Television: $1,041MM
  • Filmed Entertainment: $2,038MM
  • Affiliate Fees: $2,900MM
  • Advertising: $1,709MM
  • Content: $1,903MM

List of Key Properties:

Forward Thinking:

Links to Company Website:

Please comment below if there are data points from 21st Century Fox you’d like me to include in their next Earnings Call Summary.

 

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